Sep 5 (Lagos) - The stock market declined by 1.49% today led by declines in
DANGCEM (-3%) and biggest banks
ZENITHBANK and
GUARANTY declining 2.05% and 1% respectively.
But the overall loss covered the pounding that a particular sector received today from investors, yes it is the Insurance sector.
Even all the optimism around the
AIICO stock could not save it from losing almost 9% today.
Other Insurance stocks which were pounded today include Mutual Benefits (
MBENEFIT ) which is currently doing a rights issue,
UNIVINSURE lost 10%,
LAWUNION lost 9.59%,
NEM lost minor 0.3%,
SOVRENINS lost 8%,
On the green side there was not much but
REGALINS gained 4.5% while HMARKINS gained 8.7%.
Since the 50 Kobo base rule was withdrawn, most Insurance stocks have fallen well below the 50 kobo mark.
It shows how little trust investors have in the Insurance sector, their corporate governance structures and their un-audited financial results.
Things don't seem to be changing even after NAICOM gave a jolt to the sector by introducing tier based rankings for the Insurance companies. Most are scrambling to meet the requirements to operate in their desired tier.
A prudent investor should study the best names and separate them from the rest before making an investment. There is value in two or three of these stocks but make sure you are careful in analysis as a lot of things are hidden in their books and what you see may not be what you are getting. Be very careful.
reporting for easykobo.com on Sep 5 2018 from Lagos, Nigeria